
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 16USC470d]

 
                         TITLE 16--CONSERVATION
 
     CHAPTER 1A--HISTORIC SITES, BUILDINGS, OBJECTS, AND ANTIQUITIES
 
              SUBCHAPTER II--NATIONAL HISTORIC PRESERVATION
 
                            Part A--Programs
 
Sec. 470d. Loan insurance program for preservation of property 
        included on National Register
        

(a) Establishment

    The Secretary shall establish and maintain a program by which he 
may, upon application of a private lender, insure loans (including loans 
made in accordance with a mortgage) made by such lender to finance any 
project for the preservation of a property included on the National 
Register.

(b) Loan qualifications

    A loan may be insured under this section only if--
        (1) the loan is made by a private lender approved by the 
    Secretary as financially sound and able to service the loan 
    properly;
        (2) the amount of the loan, and interest rate charged with 
    respect to the loan, do not exceed such amount, and such a rate, as 
    is established by the Secretary, by rule;
        (3) the Secretary has consulted the appropriate State Historic 
    Preservation Officer concerning the preservation of the historic 
    property;
        (4) the Secretary has determined that the loan is adequately 
    secured and there is reasonable assurance of repayment;
        (5) the repayment period of the loan does not exceed the lesser 
    of forty years or the expected life of the asset financed;
        (6) the amount insured with respect to such loan does not exceed 
    90 per centum of the loss sustained by the lender with respect to 
    the loan; and
        (7) the loan, the borrower, and the historic property to be 
    preserved meet other terms and conditions as may be prescribed by 
    the Secretary, by rule, especially terms and conditions relating to 
    the nature and quality of the preservation work.

The Secretary shall consult with the Secretary of the Treasury regarding 
the interest rate of loans insured under this section.

(c) Limitation on amount of unpaid principal balance of loans

    The aggregate unpaid principal balance of loans insured under this 
section and outstanding at any one time may not exceed the amount which 
has been covered into the Historic Preservation Fund pursuant to section 
470h of this title and subsections (g) and (i) of this section, as in 
effect on December 12, 1980, but which has not been appropriated for any 
purpose.

(d) Assignability of insurance contracts; contract as obligation of 
        United States; contestability

    Any contract of insurance executed by the Secretary under this 
section may be assignable, shall be an obligation supported by the full 
faith and credit of the United States, and shall be incontestable except 
for fraud or misrepresentation of which the holder had actual knowledge 
at the time it became a holder.

(e) Conditions and methods of payment as result of loss

    The Secretary shall specify, by rule and in each contract entered 
into under this section, the conditions and method of payment to a 
private lender as a result of losses incurred by the lender on any loan 
insured under this section.

(f) Protection of financial interests of Federal Government

    In entering into any contract to insure a loan under this section, 
the Secretary shall take steps to assure adequate protection of the 
financial interests of the Federal Government. The Secretary may--
        (1) in connection with any foreclosure proceeding, obtain, on 
    behalf of the Federal Government, the property securing a loan 
    insured under this part; and
        (2) operate or lease such property for such period as may be 
    necessary to protect the interest of the Federal Government and to 
    carry out subsection (g) of this section.

(g) Conveyance to governmental or nongovernmental entity of property 
        acquired by foreclosure

    (1) In any case in which a historic property is obtained pursuant to 
subsection (f) of this section, the Secretary shall attempt to convey 
such property to any governmental or nongovernmental entity under such 
conditions as will ensure the property's continued preservation and use; 
except that if, after a reasonable time, the Secretary, in consultation 
with the Advisory Council on Historic Preservation, determines that 
there is no feasible and prudent means to convey such property and to 
ensure its continued preservation and use, then the Secretary may convey 
the property at the fair market value of its interest in such property 
to any entity without restriction.
    (2) Any funds obtained by the Secretary in connection with the 
conveyance of any property pursuant to paragraph (1) shall be covered 
into the historic preservation fund, in addition to the amounts covered 
into such fund pursuant to section 470h of this title and subsection (i) 
of this section, and shall remain available in such fund until 
appropriated by the Congress to carry out the purposes of this 
subchapter.

(h) Assessment of fees in connection with loans

    The Secretary may assess appropriate and reasonable fees in 
connection with insuring loans under this section. Any such fees shall 
be covered into the Historic Preservation Fund, in addition to the 
amounts covered into such fund pursuant to section 470h of this title 
and subsection (g) of this section, and shall remain available in such 
fund until appropriated by the Congress to carry out purposes of this 
subchapter.

(i) Treatment of loans as non-Federal funds

    Notwithstanding any other provision of law, any loan insured under 
this section shall be treated as non-Federal funds for the purposes of 
satisfying any requirement of any other provision of law under which 
Federal funds to be used for any project or activity are conditioned 
upon the use of non-Federal funds by the recipient for payment of any 
portion of the costs of such project or activity.

(j) Authorization of appropriations for payment of losses

    Effective after the fiscal year 1981 there are authorized to be 
appropriated, such sums as may be necessary to cover payments incurred 
pursuant to subsection (e) of this section.

(k) Eligibility of debt obligation for purchase, etc., by Federal 
        Financing Bank

    No debt obligation which is made or committed to be made, or which 
is insured or committed to be insured, by the Secretary under this 
section shall be eligible for purchase by, or commitment to purchase by, 
or sale or issuance to, the Federal Financing Bank.

(Pub. L. 89-665, title I, Sec. 104, Oct. 15, 1966, 80 Stat. 917; Pub. L. 
96-515, title II, Sec. 204, Dec. 12, 1980, 94 Stat. 2994.)

                          Codification

    In subsec. (c), ``December 12, 1980'' substituted for ``the date of 
enactment of this Act''. ``This Act'' probably meant the National 
Historic Preservation Act Amendments of 1980 (Pub. L. 96-515) rather 
than the National Historic Preservation Act of 1966 (Pub. L. 89-665).


                               Amendments

    1980--Subsec. (a). Pub. L. 96-515 substituted provision authorizing 
the Secretary to establish and maintain a program by which he, upon 
application of a private lender, insure loans made by such lender to 
finance any project for the preservation of a property included on the 
National Register for provision prohibiting grants to surveys or 
projects receiving assistance from any other Federal program or 
activity.
    Subsec. (b). Pub. L. 96-515 substituted provision prescribing loan 
qualifications for provision authorizing the President, in order to 
assure consistency in policies and actions and coordination of planning, 
acquisition, and development assistance to States with other related 
Federal programs, to issue regulations as deemed desirable.
    Subsecs. (c) to (k). Pub. L. 96-515 added subsecs. (c) to (k).

                          Transfer of Functions

    Enforcement functions of Secretary or other official in Department 
of the Interior and such functions of Secretary or other official in 
Department of Agriculture, insofar as they involve lands and programs 
under jurisdiction of that Department, related to compliance with 
historic preservation under sections 470 to 470a, 470b, and 470c to 
470w-6 of this title with respect to pre-construction, construction, and 
initial operation of transportation system for Canadian and Alaskan 
natural gas transferred to Federal Inspector, Office of Federal 
Inspector for Alaska Natural Gas Transportation System, until first 
anniversary of date of initial operation of Alaska Natural Gas 
Transportation System, see Reorg. Plan No. 1 of 1979, Secs. 102(e), (f), 
203(a), 44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 
1979, set out in the Appendix to Title 5, Government Organization and 
Employees. Office of Federal Inspector for the Alaska Natural Gas 
Transportation System abolished and functions and authority vested in 
Inspector transferred to Secretary of Energy by section 3012(b) of Pub. 
L. 102-486, set out as an Abolition of Office of Federal Inspector note 
under section 719e of Title 15, Commerce and Trade.

                  Section Referred to in Other Sections

    This section is referred to in section 470a of this title.
